Accelerating financial operations: the power of AR automation

Blog | April 18, 2024

Reading time: 3 min
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In the critical field of financial management, AR automation is a transformative tool, offering unprecedented opportunities for finance professionals to expedite their accounts receivable (AR) processes. This technology reshapes the traditional approach to financial operations, ensuring quicker payment cycles and enhanced collector productivity.

Automate accounts receivable (AR) to increase the speed of payments

AR automation cuts the speed bumps from the traditional payment process. Finance pros no longer need to manually input emailed (or called-in) virtual credit card numbers and can instead rely on an automated system that securely opens emailed payments, reads them, processes the payment, and logs the remittance data into the cash application system. Automation augments the proficiency of the finance team and allows them to focus on tasks that necessitate a personal touch, such as customer relationship management.

Automating invoicing for faster payments

One of the most cumbersome tasks within the financial department is invoicing. Manual processes can lead to delays, errors, and ultimately, slower payment completion. AR automation tools take charge of invoicing by ensuring accuracy and timely delivery. These solutions can automatically generate and distribute invoices, follow up with clients, and even provide real-time updates on payment statuses via email or billing and payment portals.

A growing challenge in AR is the preponderance of AP portals, websites set up by buyers that require AR departments to manually log into them and key in invoice data. New AR automation solutions enable AR professionals to automate this process and even to check invoice statuses without needing to log into individual customer AP portals.

Process payments quicker with automation

Advanced AR automation solutions read, and process emailed virtual card payments, seamlessly integrate with banking systems, and facilitate easy reconciliation by properly processing remittance data. This ensures payments are not waiting to be processed by overworked staff.

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Using AR automation to incentivize faster customer payments

AR automation offers suppliers flexibility in how they present payment terms to their buyers, both individually or in segmented groups. Incentives can be designed to encourage faster payment or payment through preferred channels without needing employees to manually verify and apply said incentives.

Personalized invoice follow-ups and reminders can be automatically generated. And integrated dispute resolution features can shorten dispute-related delays. Automation has something to offer to every facet of the customer payment experience.

Quickly apply cash with AR automation

Cash application has historically been a meticulous task, often plagued by human error and the demands of manual matching. AR automation simplifies the equation, implementing intelligent algorithms to match payments with invoices. This ensures that the cash application process is swift and error-free, boosting your treasury's efficiency and the availability of working capital.

Improve collector efficiency with automation

Finally, AR automation greatly enhances the role of collectors by automating routine tasks and providing daily task lists that align with department-level strategies. With detailed histories at their fingertips, collectors can prioritize their efforts, addressing high-value accounts promptly without leaving mid-sized accounts behind.

Future-proof your financial operations with AR automation

AR automation offers a pathway to accelerated financial operations, ensures swift and efficient payment processes, and enables teams to allocate their resources to strategic initiatives that drive business growth. Harnessing the power of AR automation is not merely an operational decision; it's a strategic imperative for finance departments aiming to thrive in a digital-first world.

Grow your business with accounts receivable automation

Accelerate your accounts receivable processes so that you can move your financial operations forward!

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